12. GOVERNMENT CONTRACTS

The Company recognizes revenue from U.S. and European Union (“E.U.”) government research contracts during the period in which the related expenditures are incurred and presents revenue and related expenses on a gross basis in the consolidated statement of operations and comprehensive loss. In the periods presented, substantially all of the revenue the Company generated was derived from research contracts and grants from the U.S. government. As of December 31, 2014, the Company had completed all development activities of its contracts with the Department of Defense (“DoD”).

The following table sets forth the revenue from each of the Company’s contracts with the U.S. government and other revenue for each of the periods indicated:


	For the Year Ended December 31
	2014		2013		2012
	(in thousands)
July 2010 Agreement (Ebola and Marburg Intravenous Administration)	$	6,816	$	9,064	$	36,557
June 2010 Agreement (H1N1/Influenza)		—		427		—
August 2012 Agreement (Intramuscular administration)		—		2,791		673
European Union SKIP-NMD Agreement (DMD)		1,432		1,263		—
Children’s National Medical Center Agreement (DMD)		659		674		—
Carolinas Medical Center Agreement (DMD)		850		—		—
Other Agreements		—		—		99

Total	$	9,757	$	14,219	$	37,329

July 2010 Agreement (Ebola and Marburg Intravenous Administration)

In July 2010, the Company was awarded the DoD contract managed by its Joint Project Manager Medical Countermeasure Systems (“JPM-MCS”) program for the advanced development of its hemorrhagic fever virus therapeutic candidates, AVI-6002 and AVI-6003, against Ebola and Marburg viruses, respectively. In February 2012, the Company announced that it received permission from the U.S. Food and Drug Administration (“FDA”) to proceed with a single oligomer from AVI-7288, one of the two components that make up AVI-6003, as the lead product candidate against Marburg virus infection. In August 2012, the Company received a stop-work order related to the Ebola virus portion of the contract and, in October 2012, the DoD terminated the Ebola portion of the contract for the convenience of the government due to government funding constraints.

The Marburg portion of the contract was structured into four segments and had an aggregate remaining period of performance spanning approximately four years if the DoD exercised its options for all segments. Activities under the first segment began in July 2010 and included preclinical studies and Phase I studies in healthy volunteers. In February 2014, the Company announced positive safety results from the Phase I multiple ascending dose study of AVI-7288. In July 2014, the Marburg portion of the agreement expired. For the years ended December 31, 2014, 2013 and 2012, the Company recognized $6.8 million, $9.1 million and $36.6 million, respectively, as revenue under this agreement. The majority of the revenue under this contract has been recognized as of December 31, 2014 and only revenue for contract finalization, if any, is expected in the future.

June 2010 Agreement (H1N1/Influenza)

In June 2010, the Company entered into an agreement with the Defense Threat Reduction Agency (“DTRA”) to advance the development of AVI-7100 as a medical countermeasure against the pandemic H1N1 influenza virus in cooperation with the Transformational Medical Technologies program (“TMT”) of the DoD. The period of performance for this agreement ended in June 2011. The Company recognized $0.4 million associated with this agreement for the year ended December 31, 2013, which was the result of an indirect rate adjustment.

August 2012 Agreement (Intramuscular administration)

In August 2012, the Company was awarded a contract from the JPM-MCS program. The contract was for approximately $3.9 million to evaluate the feasibility of an intramuscular route of administration using AVI-7288, the Company’s candidate for treatment of the Marburg virus. The period of performance for this contract concluded in the third quarter of 2013. Accordingly, no revenue was recognized since the conclusion of the contract. For the years ended December 31, 2013 and 2012, the Company recognized $2.8 million and $0.7 million, respectively, as revenue under this agreement.

European Union SKIP-NMD Agreement (DMD)

In November 2012, the Company entered into an agreement for a collaborative research project partially funded by the E.U. Health Innovation. The agreement provides for approximately $2.5 million for research in certain development and study related activities for a DMD therapeutic. For the years ended December 31, 2014 and 2013, the Company recognized $1.4 million and $1.3 million, respectively, as revenue under this agreement. The majority of the revenue under this contract has been recognized as of December 31, 2014 and only revenue for contract finalization, if any, is expected in the future.

Children’s National Medical Center Agreement (DMD)

In July 2013, the Company entered into an agreement totaling $1.3 million to provide drug product to Children’s National Medical Center to conduct research related to the Company’s DMD program. During each of the years ended December 31, 2014 and 2013, the Company recognized $0.7 million as revenue under the agreement.

Carolinas Medical Center Agreement (DMD)

The Company entered into a collaboration agreement with Carolinas Medical Center (“CMC”) to co-develop one of the Company’s DMD programs. Under the agreement, CMC was obligated to reimburse certain preclinical costs incurred by the Company. All preclinical work was completed and the Company recognized revenue of $0.9 million for the twelve months ended December 31, 2014.